The Indian government offers a vast array of subsidies across sectors to promote growth. However, the process of securing subsidies involves overcoming multiple challenges that many companies struggle with. Here are some of the biggest obstacles faced when trying to obtain government subsidies and incentives in India.
Lack of Awareness of Schemes
Firstly, many businesses are simply unaware of available subsidy programs or current changes. For example, the Production Linked Incentive Scheme offers major incentives for manufacturers, but limited promoters know enough about it. Without adequate knowledge of suitable schemes, companies miss out on potential benefits.
Complex Registration and Application Process
Even locating information online about subsidies requires sifting through complex government portals and guidelines. The application forms tend to be long and intensive with extensive documentation and compliance requirements. Most businesses do not have the manpower or expertise to handle the registration steps.
Delays and Administrative Hurdles
After applying, businesses get bogged down dealing with bureaucratic delays, requests for clarification, and administrativeBottlenecks. Follow-up is essential but difficult to consistently manage along with normal operations. Applications often languish for months before approval.
Lack of External Support
Companies need assistance managing liaisons between different government agencies and coordinating with entities like banks, lawyers, auditors to get all application components ready. But most lack access to such comprehensive support.
Inability to Demonstrate Eligibility
Subsidies require meeting strict eligibility criteria related to areas like turnover, profits, investment size, and product localization. Companies struggle to correctly analyze metrics and provide documentation demonstrating they qualify and deserve incentives.
Frequent Changes in Policy
Frequent amendments to subsidy policies, criteria, and procedures makes it difficult for businesses to stay updated. Any application process error resulting from outdated knowledge can invalidate the application.
WedoFinServ Provides End-to-End Subsidy Application Support
To overcome these common challenges, partnering with an expert subsidy consultant like WedoFinServ can be hugely beneficial for Indian businesses. With a track record of helping clients secure over ₹500 crores in subsidies, WedoFinServ assists with awareness of schemes, handling registration, demonstrating eligibility, navigating bureaucratic requirements, and facilitating approval. Their hands-on application support enables businesses to claim their full entitlement of subsidies hassle-free.
